Siam Makro Reports Slight Earnings Growth in 1Q23 as Wholesale Revenue Accelerates

Siam Makro Public Company Limited (SET: MAKRO) has announced its 1Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 1Q23 1Q22
Net Profit (Loss)
Million Baht
2,165.65 2,050.31
Earning Per Share
0.2000 0.1900
% Change 5.63

MAKRO reported a net profit of Baht 2,166 million, an increase of Baht 116 million or 5.6% YoY, due to an increase in the wholesale business, which marked at Baht 1,897 million or jumped 8.9% YoY. While the retail business reported a net profit of Baht 269 million, which dropped by 12.8% YoY from higher finance costs, higher electricity expenses, and an early amortization of the upfront fee from debt prepayments in amount of Baht 211 million.

Gross profit margin was 14.0% of the total sales revenue, which slightly decreased from 1Q/2022 which stood at 14.2%, primarily due to a dip in retail gross profit margin to 18.0% from 18.6% YoY. However, the wholesale gross profit margin stood at 10.9% higher than the same period last year at 10.4%.

MAKRO reported total revenue of Baht 120,222 million, an increase of Baht 8,804 million or 7.9% year-on-year. While revenue from sales of goods was Baht 114,044 million, which increased by Baht 7,776 million or 7.3% from the same period last year, which mainly due to an increase in wholesale business of Baht 7,371 million or 13.0% from the same quarter last year. The notable increase in sales primarily attributed to in-stores sales purchases, an improvement in delivery efficiency to bolster the online and Omni-channel sales of Makro-Thailand, an expansion of Makro-International across all countries, and a steady recovery in Foodservice APME.

Additionally, Makro-Thailand’s same store sales growth (SSSG) remarkably improved and reached at 10.9%.